Minggu, 07 April 2013

0% interest credit cards as a means to pay off your student loan Teen

College isn’t always cheaper. This is a reality that parents have to deal with. In fact, the National Center of education statistics disclosed that over 50% of college students in the United States have student loans starting at $ 10,000.

It is inevitable for the loan lender asking for debt repayment. Most people would struggle with the payment while others would simply turn on their credit card with 0% interest.

College loan repayment of your Teen

Several individuals in the United States, especially parents, have opted to use a credit card 0% interest in paying their child’s student loan. The goal is to pay off your student loan and credit card as quickly as possible. Remember that the offer of 0% is not permanent. Generally, it is only available for six months up to 18 months.

It is important to never play the game of interests, means that you should not invest money to pay off the loan at a higher rate. Think about the risks involved as well as added taxes which are payable on capital gains. Both of these easily could diminish the yield to almost zero.

Using a credit card 0% interest wisely

We say that the student loan to your son has amounted to $ 4,000 and your main objective is to complete the payment within a year. Student loan interest is 7% and is expected to get a card that has 0% introductory offer that will last 12 months or more. To succeed, you must follow these steps to make sure that the card will be able to help in funding your child’s loan:

1. monthly payments-by taking the example above, you need at least $ 380 per month to pay off the debt of $ 4,000 a year. Find out whether the amount is within your budget. If you don’t want to sell some of your stuff or your child to allow payment. Also it is wise to get another job, if your monthly payment seems out of your reach.

2. Board decision-choose the correct card with 0% APR on purchases and balance transfers. Note the length of the introduction. Make sure it lasts at least 12 months or, preferably, more on the APR offered.

3. to maintain or to transfer-the subsequent decision to make is whether to maintain the position of student loan or transfer it to the card. If you plan to transfer, 0% APR on balance transfers is very valuable.

4. Negotiate – apart from the APR balance transfer, there’s transaction fees. Usually, charge card a minimum of 3% of the amount transferred. You can ask the lender to give up flat fee.

5. other costs-pay the balance in time to avoid paying the charge. Some companies will void the offer 0% if you miss a single payment.

Be persistent, as soon as you start paying a student loan of your teen by credit card 0% interest. Choose the right card and be meticulous in paying the balances are the keys to solving a problem student loan.